BTC, ETH and NFT in 2024: The Okhotnikov Company Analyzes the Effectiveness of Layer 2 Protocols

The article “SEC threatens ETH”, opening up new opportunities in the DeFi market helps understand the issues of introducing NFT technology into the BTC and ETH network. Vladimir Okhotnikov, an expert in the field of blockchain and cryptocurrency and the head of the Okhotnikov company, examines the problems of the performance of the Lightning Network protocol and talks about the prospects of second-level blockchains on the eve of the Bitcoin halving.

The publication is devoted to current issues related to the implementation of L2 solutions designed to eliminate network scalability problems of the two largest cryptocurrencies by capitalization. Mr. Lado Okhotnikov analyzes the difficulties experienced by Litecoin investors after the reduction in mining rewards, which occurred on August 2, 2023. According to Vladimir, this situation last year is in many ways reminiscent of the excitement that is observed today on the eve of the BTC halving.

The expert analyzes problems related to the performance of the Lightning Network protocol. This is how Vladimir comments on the network congestion and, as a result, the monstrous increase in commissions on the Bitcoin blockchain at the end of 2023:

“In December, the average cost of a transaction on the Bitcoin network rose to an incredible $38. Then, in January 2024, the commission dropped to $9. The reason for this explosive growth is obvious – the integration of NFT coins into the Bitcoin blockchain.”

Next, Vladimir talks about three revolutionary technological solutions that made it possible to integrate NFT technologies into the Bitcoin blockchain. We are talking about three protocols: Op_return, Taproot and Ordinals.

The article reveals the features of each of these blockchain updates, especially highlighting the latest — Ordinals.

As Mr. Okhotnikov explains, the latest Ordinals update assigns a unique serial number to any Satoshi, thus turning it into an NFT.

The expert points out that such numbered pieces of Bitcoin can be used in the future for exchange and sale. At the same time, the tokenomics of ether is structured somewhat differently: a link to a third-party address is simply inserted into the smart contract, which serves as confirmation of the new status of the token.

The article demonstrates the technological differences between the Bitcoin and Ethereum networks. Mr. Okhotnikov analyzes the risks of losing BTC coins associated with sending NFT transactions through the Ordinals protocol, and makes recommendations to avoid such situations.

While committed to the ideals of DeFi, Vladimir cautions novice investors and traders, stating that the cryptocurrency market is extremely volatile and threatens instant ruin for anyone who abuses margin trading.

Vladimir believes that 2024 carries huge risks for the cryptocurrency market volatility, the introduction of CBDC, interstate sanctions and much more. However, Nayib Bukele, the president of El Salvador, finally hit the jackpot by legitimizing Bitcoin as a legal means of payment and purchasing it in large quantities two years ago.

Read about this and much more in the оriginal articlе.

About the company

The Okhotnikov company is engaged in business planning and investment issues. Its areas of interest include the evolution and tokenomics of the largest cryptocurrencies, the development of advanced technologies and the future of the financial market.

Vladimir Okhotnikov’s Press Center

Floralia, LLC

Phone: +7(771)317-20-55

Address: Kazakhstan, 041609, Almaty region,Talgarsky district, Besagasky rural district, Besagash village, Rayymbek Batyr st, 285